The United States will continue importing Indian manufactured smartphones, laptops and other electronic goods ‘duty-free’, despite announcing 25% tariffs on July 30, as per reports.
The zero duty benefit extends to US imports of electronic goods from Vietnam and Taiwan too, as well as China. However, Chinese products have to face an additional 20% ‘Fentanyl duty’ imposed by the Trump administration. Indian manufacturers are hopeful of maintaining the competetive edge.
The electronic goods are currently outside the 25% tariff net because the US investigation under Section 232, examining the impact of imported electronics goods on their national security, is ongoing.
In the June quarter, India had emerged as the largest exporter of smartphones to the USA, after China and Vietnam and accounting for 44% of all US imports in the segment.
As per reports, pharmaceuticals are also exempt from the 25% tariff. So far in FY 25, India has exported pharmaceuticals and smartphones worth $25 billion to the USA.
